Investment Rating - The report maintains a "BUY" rating for BYD Electronic with a target price of HKD 41.35, indicating an upside potential of +54.3% from the current price of HKD 27.10 [2][10]. Core Insights - BYD Electronic's 1Q24 results were in line with expectations, showing revenue growth of 38.5% year-on-year to RMB 36.5 billion and net profit growth of 33% to RMB 610 million, primarily driven by the consolidation of Jabil Singapore [2][3]. - The company is expected to benefit from increased project wins from US clients following the acquisition of Jabil, which positions BYD Electronic as a strategic partner for flagship projects [2][3]. - The generative AI smartphone market is anticipated to drive a new replacement cycle, with shipments expected to grow significantly from 4% in 2023 to 8% in 2024, potentially reaching 522 million units by 2027 [4]. Financial Performance - BYD Electronic's assembly service revenue grew by 23% year-on-year in FY23, while components revenue saw a decline of approximately 4% year-on-year [3]. - The automotive intelligent segment revenue surged by 52% year-on-year to RMB 14.1 billion in FY23, reflecting strong demand for electrification and intelligent systems [7]. - The IoT and automotive segments are projected to achieve over 20% growth in the next 2-3 years, with revenue expected to reach approximately RMB 40 billion to RMB 50 billion in FY24E-25E [7][9]. Earnings Forecast - The report has adjusted BYD Electronic's FY24E and FY25E earnings forecasts, projecting a revenue growth of 25.8% and a net profit growth of 20.0% CAGR from FY23 to FY26E [9][11]. - The company is expected to maintain a gross margin of around 8.0% to 9.0% in the coming years, supported by improved product mix and operational efficiencies [9][11]. Market Position and Strategy - BYD Electronic is diversifying its business away from smartphone-related activities, focusing on IoT and automotive segments as key growth drivers [9][10]. - The company has established a strategic partnership with NVIDIA, which will enhance its capabilities in AI products, including customized servers for internet customers [6][9].

Investment Rating - The report maintains a "BUY" rating for the company, with a new target price of HK$24.80, implying a 37.8% upside from the current price of HK$18.00 [4][6]. Core Insights - The company experienced a positive VNB growth of +30.7% YoY in 1Q24, outperforming peers such as China Life and Ping An [2]. - The net profit attributable to shareholders grew by +1.1% YoY to RMB 11.8 billion in 1Q24, marking a turnaround after three consecutive quarters of decline [2][9]. - The insurer's life underwriting focus has shifted back to agency distribution, with agency FYP increasing by +31.3% YoY [2][10]. - The bancassurance channel faced challenges, with FYP declining by -21.8% YoY, although this was an improvement from a -54.6% decline in the previous quarter [2][11]. - The report highlights the potential for margin expansion due to the ongoing Changhang Transformation initiated in 2022 [2][6]. Summary by Sections Financial Performance - The company's net profit for FY23 was RMB 27.9 billion, with an expected increase to RMB 32.2 billion in FY24 [3]. - The EPS is projected to rise from RMB 2.83 in FY23 to RMB 3.30 in FY24 [3][15]. - The company reported a total insurance revenue of RMB 266.2 billion in FY23, with an expected increase to RMB 281.6 billion in FY24 [14]. Valuation Metrics - The stock is currently trading at 0.29x FY24E P/EV and 0.61x FY24E P/BV, with the new target price implying 0.40x FY24E P/EV and 0.84x FY24E P/BV [6][7]. - The report indicates a conglomerate discount of 10% applied to the valuation [5]. Operational Metrics - The company's first-year premiums (FYP) for 1Q24 were RMB 32.8 billion, a slight increase of +0.4% YoY [2][11]. - The agency channel's FYRP and FYSP grew by +25.4% and +44.5% YoY, respectively, indicating a strong recovery in agency productivity [2][10]. - The combined ratio for P&C insurance improved slightly to 98.0% in 1Q24 from 98.4% in 1Q23 [12]. Investment Performance - The net investment results showed a decline of -26.1% YoY, primarily due to a drop in net interest income and a shift from a gain to a loss in investment income [2][9]. - The total investment assets increased by 4.2% YoY to RMB 2,344.8 billion [13]. Solvency Ratios - The core solvency ratio for CPIC Life was reported at 107.9% in 1Q24, down from 117.0% in 4Q23 [11]. - The comprehensive solvency ratio was 195.8% in 1Q24, reflecting a decrease from 209.8% in the previous quarter [11].

M N 2 May 2024 CMB International Global Markets | Equity Research | Company Update Henlius Biotech (2696 HK) Strong product sales in 1Q  Strong sales maintained in 1Q24. Henlius Biotech (Henlius) recorded total Target Price HK$20.33 revenue of RMB1.349bn in 1Q24, up 35% YoY. Of this, HANQUYOU’s sales in (Previous TP HK$18.67) China was RMB671mn (+25% YoY, -4% QoQ), which accounted for 23% of our Up/Downside 21.2% previous FY24 estimate. In 1Q24, serplulimab (PD-1) experienced robust Current Price HK$16.78 ...

M N 2 May 2024 CMB International Global Markets | Equity Research | Company Update Yum China (9987 HK) 2Q24E is tough but turnaround is still possible o The 1Q24 results of Yum China were satisfactory, however the catering industry Target Price HK$348.13 remain subdued and hence we have become more cautious about YUMC’s (Previous TP HK$384.17) 2Q24E outlook. But since the turnaround in 2H24E should still be intact, plus Up/Downside 18.3% the massive buyback and dividend payment, we continue to maintain BUY. ...

M N 2 May 2024 CMB International Global Markets | Equity Research | Company Update Joinn Laboratories (6127 HK) Waiting longer for recovery to materialize Target Price HK$10.36 Joinn reported 1Q24 revenue of RMB325mn, down 12.1% YoY, and booked (Previous TP HK$14.41) attributable net loss of RMB272mn, a significant downturn from an attributable Up/Downside 24.6% net profit of RMB188mn in 1Q23. The 1Q24 revenue accounted for 13.4% of Current Price HK$8.31 our full-year estimate, in line with its historical a ...

M N 2 May 2024 CMB International Global Markets | Equity Research | Company Update WuXi AppTec (603259 CH) Steady 1Q performance amid challenging environment Target Price RMB53.23 WuXi AppTec reported 1Q24 revenue of RMB7,982mn, down 11.0% YoY, (Previous TP RMB67.53) attributable recurring net profit of RMB2,034mn, up 7.3% YoY, and attributable Up/Downside 21.9% adjusted non-IFRS net profit of RMB1,913mn, down 18.3% YoY. 1Q24 revenue Current Price RMB43.67 / adjusted Non-IFRS net income accounted for 20.4%/ ...

| RESEARCH 6 May, 2024 Nameson (01982.HK) Current Price HK$ 0.69 HKD, mn 2019/ Absolute 27.8% 38.0% 91.3% 63.3% TARGET PRICE HK$ - Expansion of cashmere yarn business: Nameson (01982.HK) entered into a JV agreement with its largest cashmere supplier, Hebei Yuteng, to engage in the manufacturing of cashmere yarn in Vietnam, the total production capacity per annum is designed to be 500 - 550 tonnes. Given the >80% utilization rate of cashmere yarn in Hebei, an increase in production capacity in Vietnam suppor ...

Investment Rating - The report maintains a "Buy" rating for EuroEyes (01846.HK) with a target price of HKD 6.92, indicating an upside potential from the current price of HKD 5.36 [4][11][20]. Core Insights - EuroEyes' overall performance in 2023 slightly fell short of expectations due to operational challenges at the London Vision Clinic and delayed clinic openings in Hong Kong and Germany. Despite this, demand for presbyopia correction treatments remained strong, leading to a 37.1% increase in lens exchange surgery revenue to HKD 371.8 million [7][11]. - The aging demographic is expected to drive demand for trifocal lens exchange surgery, which is anticipated to be a key growth driver for the company. The Knightsbridge clinic is projected to reach breakeven within 6 to 9 months, while the Hong Kong flagship clinic may take 1 to 2 years [8][11]. - The company plans to open new clinics in Kiel and Wiesbaden, Germany, by the end of the first half of 2024, and will also construct consultation centers in Beijing and Shanghai to enhance existing surgical center utilization [9][11]. - EuroEyes is pursuing an aggressive M&A strategy with a budget of HKD 500 million to acquire established practices in Europe, America, and Asia Pacific, aiming to complete these acquisitions within 24 months [11][19]. - The company has initiated a share buyback program to repurchase up to 3% of its outstanding shares, reflecting confidence in its future prospects [11]. Financial Performance - EuroEyes achieved a record turnover of HKD 714.3 million in 2023, marking a 17.0% year-on-year increase. Adjusted gross profit rose by 23.2% to HKD 339.4 million, with a gross profit margin of 47.5% [16][47]. - The adjusted net profit surged by 40.0% year-on-year to nearly HKD 141.7 million, resulting in a net profit margin of 19.8% [16][47]. - Revenue is projected to grow to HKD 842.7 million in 2024, with a year-on-year growth rate of 18.0% [47].

M N 30 Apr 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) 1Q24 net profit +40% YoY in line; solid growth outlook Target Price RMB20.40 While Weichai Power (Weichai)’s revenue growth of 6% YoY in 1Q24 is below (Previous TP RMB20.40) our expectation, net profit of RMB2.6bn (+40% YoY) accounted for 21.4% of our Up/Downside 15.0% full-year estimates (run rate in 1Q23: 20.5%), which is still in line with our Current Price RMB17.74 expectation. The earnings grow ...

Investment Rating - The report maintains a "BUY" rating for Weichai Power with a target price of HK$22.00, indicating a potential upside of 33.3% from the current price of HK$16.50 [4]. Core Insights - Weichai Power's net profit for 1Q24 increased by 40% year-on-year to RMB2.6 billion, driven by margin expansion in both its core business and KION Group [2]. - The revenue growth of 6% year-on-year to RMB56.4 billion in 1Q24 was below expectations, but the earnings growth was in line with forecasts [2]. - The company is positioned as a sector top pick due to its significant market share in natural gas engines and the expected structural growth from high-speed large-bore engines [2]. Financial Performance Summary - 1Q24 revenue was RMB56.4 billion, with a gross margin expansion of 3.4 percentage points year-on-year to 22.1% [2][6]. - Pre-tax profit surged by 58% year-on-year to RMB4.2 billion, with the core business and KION reporting growth rates of 45% and 93% respectively [2]. - Operating cash flow improved significantly to RMB1.6 billion in 1Q24, compared to an outflow of RMB471 million in 1Q23 [2]. KION Group Performance - KION, in which Weichai holds a 46.5% stake, reported an adjusted EBIT of EUR227 million in 1Q24, a 46% increase year-on-year, attributed to easing cost pressures [2][7]. - KION has set a full-year adjusted EBIT target of EUR790-940 million, reflecting a potential growth of 0-19% year-on-year [2][7]. Market Position and Sales - Weichai's multi-cylinder engine sales grew by 13% year-on-year to 206,000 units in 1Q24, outperforming the industry average, which saw a decline of approximately 1% [2][8]. - The company holds a market share of around 18% in the multi-cylinder engine segment, an increase of 2.3 percentage points year-on-year [2][8]. Earnings Forecast - Revenue projections for Weichai Power are as follows: FY24E at RMB236.3 billion, FY25E at RMB250.1 billion, and FY26E at RMB260.0 billion, with respective year-on-year growth rates of 10.4%, 5.8%, and 4.0% [3][13]. - Adjusted net profit estimates are RMB12.1 billion for FY24E, RMB13.1 billion for FY25E, and RMB13.8 billion for FY26E, reflecting growth rates of 34.4%, 7.7%, and 5.5% respectively [3][13].